I was trying to follow a program written I think in C language. Came to a point where above
piece of code was written and could not determine what this code mean. I checked the C library
reference guide, but it didn't help me much.
This code is directly manipulating the microcontroller's registers (TCCR2A, TCCR2B, OCR2A). WGM21, COM2A0, CS20 are bit references within the registers. See the datasheet, http://www.atmel.com/Images/doc8271.pdf
Those registers are for the timers. You will need to check the datasheet of the specific chip in question, but it's looking like a PWM output to me. Some will be setting what PWM mode to use, and I think the CS20 will be the prescaler bit to set. The OCR2A will be a compare register IIRC.